In the commercial world, we seldom use cash in transactions. Different payment methods have been...
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Transcript of In the commercial world, we seldom use cash in transactions. Different payment methods have been...
![Page 1: In the commercial world, we seldom use cash in transactions. Different payment methods have been developed since the banking activities become more.](https://reader035.fdocuments.net/reader035/viewer/2022062802/56649e985503460f94b9b388/html5/thumbnails/1.jpg)
![Page 2: In the commercial world, we seldom use cash in transactions. Different payment methods have been developed since the banking activities become more.](https://reader035.fdocuments.net/reader035/viewer/2022062802/56649e985503460f94b9b388/html5/thumbnails/2.jpg)
In the commercial world, we seldom use cash in transactions. Different payment methods have been developed since the banking activities become more and more important in the modern society.
IntroductionIntroduction
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Methods of Payment in Methods of Payment in Trade and Other Trade and Other
TransactionsTransactions
• Cheque
• Cashier order
• Bank draft
• Telegraphic transfer
• Autopay– Standing order– Direct debit– Letter of credit
(L/C)
1. Through Commercial Banks:
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Methods of Payment in Methods of Payment in Trade and Other Trade and Other
TransactionsTransactions
• Postal remittance service
• PayThruPost service
2. Through Post Offices:
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• Promissory note• Bill of exchange
Methods of Payment in Methods of Payment in Trade and Other Trade and Other
TransactionsTransactions3. Other Methods of Payment :
• Cash• Credit card• Debit card• Smart card
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Components of a chequeComponents of a chequePayee’s name
Chq. stub
Cheng Siu Ming
Payt. Amt.
Payt. Date
Drawer’s signature/chop
chq. # Bank code
Branch code
A/C #
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Safety Flexibility Convenience A proof of payment
Advantages of Using ChequesAdvantages of Using Cheques
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Bearer cheque Order cheque Uncrossed cheque / Open cheque Crossed cheque:
General crossing Account payee only Not negotiable Not negotiable, account payee only
Types of ChequesTypes of Cheques
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– Transfer to a third party– Types:
Blank endorsement Endorsement to order
Dates of ChequeDates of Cheque– Post-dated cheque– Stale cheque– Antedated cheque
EndorsementEndorsement
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Reasons for Reasons for Not Honouring a ChequeNot Honouring a Cheque• Insufficient fund• Stale cheque• Post-dated cheque• No signature• Signature not matching the bank record• Not countersigned on alteration, etc.
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Commercial Banks and Commercial Banks and Finance Companies in Finance Companies in
HKHK• Deposit-taking institutions:
– Licensed banks
– Restricted licence banks
– Deposit-taking companies
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Comparison of Comparison of the Financial Institutionsthe Financial Institutions
HK$100,000 HK$500,000 No restriction4. Minimum
deposit amount
Only T/DOnly T/DAll3. S/A, C/A, T/D
account services
HK$25MHK$100MHK$150M2. Minimum paid-up capital
BankRestricted licenc
e bankBank1. Name
Deposit-taking companies
Restricted licence banksLicensed banks
Institution
Comparison
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Comparison of the Comparison of the Financial InstitutionsFinancial Institutions
Hong Kong Monetary Authority9. Supervised an
d audited by
Restricted by the Banking Ordinance8. Regulations
Hong Kong Monetary Authority7. Licensing auth
ority
No restriction6. Interest rates
3 monthsNo restrictionNo restriction5. Min. deposit m
aturity
Deposit-taking companies
Restricted licence banks
Licensed banks
Institution
Comparison
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Services of Commercial Services of Commercial BanksBanks
1. Accepting Deposits:– Savings account
– Current account
– Time deposit account
– Foreign currency account
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Services of Commercial Services of Commercial BanksBanks
2. Granting Loans:– Overdraft– Personal loan– Business loan– Secured loan– Trade financing– Syndicated loan
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Services of Commercial Services of Commercial BanksBanks
3. Remittance Services:–Bank draft / Demand draft–Telegraphic transfer
4. Other Services:– Automatic teller machine (ATM)– Money exchange– Trustee service– Safe deposit box– Gift cheque– Traveller’s cheque
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Latest Development of Latest Development of Banking ServicesBanking Services
PhonebankingInvestmentconsultancy
service
All-in-onemonthly
statements
Internetbankingservices
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• Major centre of foreign exchange• A strong presence of international financial
institutions• The second largest stock market in Asia• Good regulatory framework• As a window for Mainland China• The host of international meetings
The Position of HK in the The Position of HK in the International Financial International Financial
MarketMarket
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• Favourable geographical position• Regulatory framework• Good communication facilities• Qualified workers for the financial sector• Economic factors
Factors Contributing to Factors Contributing to HK’s Role as HK’s Role as
a Famous Financial Centrea Famous Financial Centre
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